What is a Prepaid Card?

In its simplest form it is either a MasterCard or Visa Debit Card.

A Prepaid Card is a payment card that can be loaded with money by you or someone else. You can then use the card to pay bills and make purchases at shops, by phone or over the internet. It's so easy - and more convenient and safer than cash.

Which Prepaid Card is right for your business?

From gifting to budgeting your money - there are many types of prepaid cards available for different purposes.

There are three types of Prepaid Card:

Open Loop

A Prepaid Card does not have a credit facility; by default it promotes and encourages financial responsibility and sound budgeting.

Many of us take a jam jar approach to managing our finances; allocating funds on plastic for specific purposes. If viewed as more than just five grammes of plastic and applied to specific market sectors it is an incredible powerful and responsible financial tool. By way of highlighting the diversity as well as the market demand of the Prepaid Card to the right outlines the forecast European market size by segment.

How does it work?

Quite simply, it's a reloadable Debit Card that can be used wherever the Visa or MasterCard logo is displayed throughout the world. Payments are loaded onto the Prepaid Card via electronic funds transfer, just like any other transfer to a mainstream bank account.

Benefits

No bank account required

Safe no need to carry large amounts of cash

No queuing to cash cheques

Immediate access to ATM's

Worldwide acceptance

Secure way to purchase over the Internet and over the phone

Ability to pay regular bills

Check balances 24/7

Replacement lost and stolen cards

Track spending on either printed monthly statements or via the internet

Prestige of having a card

Creates an account for the under-banked.

Restricted Loop

As the name implies cards on this programme can only be used at a selected collection group of retailers. This group can comprise of many different retail brands and their outlets. Unlike Open Loop where the card can be used globally wherever the Visa or MasterCard logo is displayed.

How does it work?

Participating retailers are connected either directly through there till systems or cleverly using Visa or MasterCard's infrastructure. Transactions for cards issued by retailers not within the selected group will be declined.

Benefits

Secure voucher replacement.

Control of card acceptance.

Overcome operational challenges.

Operate over multiple businesses.

Cut overhead costs by eliminating cumbersome processes.

Engage customer loyalty with retailer network rewards.

Available on either a private or Visa network to suit what is right for your company.

Closed Loop

Here the programme has only one participating retailer. A Gift Card is a fantastic working example of how the retailer's own branded card can only be used as a payment method within their own environment whether that be in store, on line or over the phone.

How does it work?

The retailer will connect their till system directly to the company processing the transactions. Transactions for cards not issued by the retailer featured on the card will be declined.